Galaxy Digital Reports $46M Loss in Q2, Down from Q1’s $554M
Galaxy Digital reported a significantly narrower loss in Q2 2023, thanks to a strong comeback in cryptocurrency prices. According to the earnings release, Galaxy’s net loss stood at $46 million in Q2, down from nearly $555 million a year ago.
Galaxy Digital Trading Revenue Slipped in Q2
Micahel Novogratz’s crypto firm Galaxy Digital reported earnings results for Q2 2023, which showed that the company’s loss narrowed compared to a year ago as cryptocurrency prices rebounded from a sharp 2022 downturn.
Specifically, Galaxy reported a net loss of $46 million in the second quarter, or 14 cents per share. This compares to the $554.7 million loss, or $1.74, reported in the same quarter last year.
“Galaxy’s operating businesses performed well in the second quarter against a backdrop of continued uncertainty and regulatory pressure.”– Mike Novogratz, founder and CEO of Galaxy said in a statement.
Trading revenue was $59.5 million in the quarter, marking a 54% decrease from the previous quarter. Galaxy said the decline in counterparty trading volume came due to the industry-wide slowdown in crypto trading activity.
The crypto services provider posted an asset management revenue of $33.8 million, 619% higher than in the previous quarter. The surge was primarily fueled by stronger net realized gains on investments from its venture platform.
Mining revenue stood at $15.4 million in the three months, 51% higher than in Q1. The surge was due to “higher income from proprietary mining activities,” Galaxy said in the press release.
Join our Telegram group and never miss a breaking digital asset story.
Crypto Market 2023 Rebound
Galaxy Digital’s ability to narrow its loss by more than $500 million year-over-year come in the wake of a remarkable rebound in crypto prices after one of the worst-ever market downturns.
The total crypto market cap recovered by roughly 50% since the start of the year, surging from about $760 billion on January 1 to $1.13 trillion as of Tuesday, per TradingView data. Naturally, the comeback was led by a resurgence in the price of Bitcoin, which gained more than 75% in 2023.
The rally was partly driven by the ongoing hype around institutional crypto adoption, triggered by BlackRock’s application to file a spot Bitcoin exchange-traded fund (ETF) earlier this year. Mike Novogratz said that the fact that Larry Fink, CEO of BlackRock, turned into a crypto believer from a non-believer is “the most important thing that happened this year in bitcoin.”
Do you think cryptocurrency prices will continue upward toward the end of 2023? Let us know in the comments below.